Crude Oil Holds Weekly Gains13 May 2017 10:50
Crude Oil Holds Weekly Gains Despite Rig Count
Fri, 12th May 2017 - 18:46
WASHINGTON (Alliance News) - Crude oil futures were flat Friday, as industry data showed US drillers added rigs for a 17th week in a row.
Some analysts thought US oil activity might have slowed amid sub-$50 oil prices, but Baker Hughes said the number of rigs drilling for new production jumped by 9 to a total of 712, versus 318 at this time last year.
Meanwhile, Commerzbank doubts whether OPEC's supply quota plan can alleviate the global supply glut anytime soon.
"Owing to the rapid recovery in US oil production, OPEC obviously only has limited influence on prices via supply curbs," it said. Extending the plan "is unlikely to be more successful than the cuts implemented so far in the longer-term."
WTI light sweet crude oil was up a penny at USD47.84 a barrel, keeping its gain of 3.5% for the week.
The Commerce Department said retail sales climbed by 0.4% in April compared to economist estimates for 0.6% growth. However, the report also said retail sales inched up by a revised 0.1% in March versus the 0.2% drop originally reported.
Meanwhile, the consumer price index rose a seasonally adjusted 0.2% in April because of higher energy costs, the Labor Department. This followed a 0.3% drop in the prior month.